George Armoyan resigns as president, CEO of Clarke Inc.

In this file photo, George Armoyan (right) is greeted by Sherritt's chairman Hap Stephen (centre) and president and CEO David Pathe (left) before Sherritt's AGM this past May in Toronto. Armoyan has stepped down as president and CEO of Clarke Inc. (CP / Sherritt International Corporation).

George Armoyan has kicked himself upstairs.

“I’m stepping down as president and CEO but I’m moving up as executive chairman,” the sometimes controversial businessman said in an interview from Toronto on Friday.

Armoyan announced Thursday he will step down as president and chief executive officer of Halifax-based investment company Clarke Inc., effective July 2.

He will be replaced by Michael Rapps, a Clarke director who has been involved in many Clarke investments.

Armoyan said he won’t be as involved in the day-to-day operations of the company, which specializes in buying into businesses that are underperforming and increasing their value.

“I’m going to be more like a sounding board or an adviser,” he said.

Armoyan, who is 53, has been involved in business for 31 years. He said he has come to a juncture in his life where he wants to spend more time with his two sons, who are 21 and 20, and perhaps groom them — “if they have the passion” — to take over his business interests.

“You always have to think about succession planning. It’s never too early.”

Armoyan said he wouldn’t have made the change unless he had complete confidence in Rapps and the Clarke team’s ability to take the company forward.

“I have a lot at stake here,” he said.

Rapps, who practised corporate law in Toronto, served as managing director of Geosam Capital Inc., Armoyan’s private investment company.

Clarke’s public company investments include Sherritt International Corp., Supremex Inc., TerraVest Capital Inc., Royal Host Inc. and SpyGlass Resources Corp.

The investment firm also owns a passenger ferry in Quebec, a container ship in the Caribbean and other private investments.

Sherritt investors recently rejected Armoyan’s attempt to place three nominees, including himself, on the Toronto mining company’s board of directors.

Armoyan announced Clarke’s management changes at the company’s annual general meeting in Toronto, where it reported a strong balance sheet of $51 million in net cash, $126 million in marketable securities, $88 million in other assets, including real estate, private equity and pension surplus, and $12 million in private company investments.